The largest corporate owner of Bitcoin in the world is seeking to raise funds to increase its crypto holdings. Microstrategy has announced its intention to offer $500 million worth of convertible senior notes in a private offering.

These convertible senior notes are a type of bond that gives investors the option to hold them until maturity or convert them into the issuer’s common stock shares. The notes will be available to institutional buyers and will mature on June 15th, 2032. The proceeds from the offering will be used to purchase more Bitcoin and for general corporate purposes.

The notes will be unsecured, senior obligations of MicroStrategy and will accrue interest payable semi-annually on June 15 and December 15 of each year, starting on December 15, 2024. MicroStrategy will have the option to redeem all or part of the notes for cash after June 20, 2029, under certain conditions.

This proposed offering is contingent on market conditions and other factors, and there is no guarantee as to when or if it will be completed. MicroStrategy currently holds 214,400 BTC, valued at $14.260 billion at the current price of $66,514. The company purchased these bitcoins at an average price of $35,158, totaling $7.538 billion.

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